Creative Solutions for Landlords Navigating the Landlord-Tenant Landscape

BY KRISTEN S. SWIFT, ESQ. AND GEORGE A. WILLIAMS III, ESQ.*

“Everything is negotiable. Whether or not the negotiation is easy is another thing.” – Carrie Fisher

Many people enter the landlord-tenant relationship as entrepreneurs, but some enter for other reasons—inability to sell a house, a solution to a problem in the short or long term, a kind gesture for a friend. No matter how you get involved in that relationship, like any relationship, sometimes things go wrong. But the concept that everything is negotiable holds true even in the landlord-tenant relationship.

Unfortunately, if you are considering eviction, something has gone wrong. It could be anything, but usually the tenant has failed to pay rent or there has been a rule violation. Landlords who adopt a negotiation mindset regarding the eviction process will probably have better results. But first, the landlord will want to take steps to preserve rights—which underscores the first phase of any negotiation—preparation.

How do landlords preserve rights?

Typically, this is accomplished by sending a letter or communication to the tenant. You will want to familiarize yourself with the rules of your jurisdiction for what constitutes acceptable notice. In Delaware, the statute provides that if a tenant has failed to pay rent, a notice of nonpayment of rent must be sent. If the tenant has violated certain rules, a notice of rules violation(s) must be sent. There are procedures for how and when to send the communication. After proper notice is established, you can begin to negotiate.

How do landlords begin to negotiate?

The second part of any negotiation is an information expedition. In certain circumstances it makes sense to interview the tenant. Utilize effective communication, be approachable, ask questions, determine timelines, and identify the real issue(s). The eviction process seems adversarial, but you should avoid starting negotiations from a hostile position. The notice may have put your tenant on edge. Be prepared to let them know you are willing to talk and be prepared to make the first move towards that conversation. Having a negotiation mindset allows landlords and their tenants to create solutions.

What are some creative solutions?

With the information you have acquired, you can help to create solutions. Negotiations can be as flexible as you can imagine but they must be reasonable, cannot conflict with the landlord tenant code or other statutes or laws meant to protect a tenant’s rights, and must be made in good faith. We will typically see deals struck that range from simple to complex. For example: A property manager offers to set up the trash pick-up with the city if the tenant throws out a couch; the parties change the date rent is due to coincide with the tenant’s bi-weekly income payments; the landlord agrees to certain repairs and a schedule of back payments is entered; workarounds to avoid evictions are extended in exchange for an agreement to leave peacefully by a certain timeframe. What if negotiation fails? Because you preserved your rights, you can file for summary possession (eviction). Recognize that filing also presents you with another opportunity to negotiate. If the parties come to an arrangement, it is incredibly important to memorialize the agreement.

A stipulated agreement filed with the court allows the landlord to preserve its rights for a specified amount of time. If the tenant violates the terms of the agreement, the landlord may file an affidavit of breach, allowing the landlord to immediately return to court and obtain the sought relief, such as possession.

Kristen Swift, Esq. is partner and George Williams, Esq. is an associate at Weber Gallagher.

*Though Kristen and George are lawyers, this article does not constitute legal advice and should not be relied upon as such.